ApeCoin slides 40% in three days despite Otherside metaverse land sale — here's why

cointelegraph.com:

ApeCoin (APE) caught its bulls off-guard with APE price losing nearly 40% in just three days.

APE's price reached its second-highest level, hitting $27.57 on April 28, up more than 2,650% from its mid-March debut.

Nonetheless, traders started unwinding their positions after Yuga Labs, the Bored Ape Yacht Club (BAYC) NFT collection's creator, released the details of the mint of its Otherside Metaverse lands, dubbed "Otherdeed."

Yuga Labs revealed that the NFT mint would cost a flat 305 APE (~$5,250 at today's price), in contrast to expectations that the company would sell the metaverse land parcels in a dutch auction manner. Thus, the disclosure may have reduced the need for people to hoard more ApeCoin tokens, leading to a drop in demand.

APE dropped to as low as $17 three days after the Yuga Labs' announcement.

Additionally, the selloff accelerated due to Yuga Labs' decision to limit the minting of Otherdeed NFTs, starting with two NFTs per wallet for the first wave. This may have also played a role in driving down demand for APE tokens.

BREAKING: BAYC has sold over $100,000,000 worth of digital real estate 45 minutes after launching their Otherside Metaverse.

ApeCoin serves as a primary settlement token for all the Yuga Labs' products and services. Additionally, it is a governance asset within "ApeCoin DAO," a decentralized autonomous organization that gives APE holders the right to vote on the proposals made by community members.

But the biggest takeaway remains APE's close association with Yuga Labs itself, a blue-chip startup whose valuation reached $4 billion almost a year after its debut. So, the hype surrounding its metaverse land sales, all payable via ApeCoin, could absorb the ongoing selling.

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